The Stewardship of Wealth: Successful Private Wealth Management for Investors and Their Advisors
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Indispensable advice for building a lasting financial legacy
Building wealth is hard to do, but maintaining that wealth across generations is even more challenging. In The Stewardship of Wealth: Successful Private Wealth Management for Investors and Their Advisors + Website, wealth advice expert Gregory Curtis reveals the investment secrets of the world's wealthiest families, so that financial planners, fund managers, and wealthy individuals everywhere can follow in their footsteps. Outlining the best practices for preserving and growing wealth, the book details exactly how to build a lasting financial legacy in the face of taxes, inflation, investment costs, and the conflicts of interest that are endemic to the financial advisory business.
Wealthy families are at the very heart of America's exceptionalism, of the vigor, resilience, and creativity that have made the U.S. the most successful nation in history. The Stewardship of Wealth's discusses the crucial role private wealth continues to play in America's remarkable economic and cultural success and the issues wealthy families and their advisors face, presenting a step-by-step guide to better managing liquid wealth.
* Reveals the wealth management strategies employed by America's wealthiest families and their financial managers
* Explores the challenges to ensuring that money stays in the family, from portfolio design to manager selection to monitoring investment performance, and much more
* Details the essential steps for ensuring a lasting financial legacy
An examination of the key issues involved in managing private wealth, especially for affluent families, The Stewardship of Wealth + Website is the ultimate guide to building a financial legacy that will last.
Power, United Light & Railways, American Light and Traction, Westinghouse Electric Corporation, Niagara Hudson Corporation, the Pennsylvania Railroad, the American Rolling Mill Company, and the Philadelphia Company, which controlled Pittsburgh’s public utilities. Andrew Mellon’s eye-popping success in his venture capital activities, and the lasting impact of his investments on the American economy, did not go unnoticed, and the venture capital industry as we know it today gradually evolved as
for the debacle: ‘‘I only made recommendations—you made the decisions.’’ Clients want their advisors to step up to the table and accept responsibility for portfolio outcomes, and advisors are much more willing to do so if they have discretion. It is also important to note that acting with discretion allows advisors to demonstrate the value of what they do in bottom-line dollars. Historically, investors have been willing to pay high fees to money managers and hedge funds (who, on the whole,
RFP response is warm and fuzzy, but the home ofﬁce is clearly an impersonal bureaucracy, that is also something the family should know. If the individuals we have met are organized and focused, but the home ofﬁce is disorganized and confused, that is likely to say something important about the experience the family is likely to have as a client of the ﬁrm. Finally, the family should invite no more than two ﬁrms to meet with all important family members and any key outside advisors. The family—not
who on the board is going to argue with the investment committee, who are, after all, the anointed experts on such things? Using Outside Experts to Populate the Investment Committee Some large-endowed institutions and many wealthy families have given up on the in-house investment committee in favor of an outside investment committee or board of advisors populated by experts selected for their skill and experience in the management of large pools of capital. At Yale University, for example, chief
stewardship, but Jay Hughes’s classic book remains the best guide. See James E. Hughes Jr., Family Wealth—Keeping It in the Family: How Family Members and Their Advisers Preserve Human, Intellectual, and Financial Assets for Generations (New York: Bloomberg Press, 2004). This, incidentally, is the revised and expanded edition of Hughes’s original book, published in 1997. 4. See Chapter 5. 5. I am thinking of such developments as money market funds, mutual funds, exchange-traded funds (ETFs),